During earnings season, short-term market movements can test investor conviction, especially when large-cap technology companies report results that often drive sharp market movements. While these broad movements can increase uncertainty or fear of missing out, they rarely change the long-term fundamentals of a durable business. Rather than reacting to headlines, investors can benefit from investing in Baron Technology ETF (BCTK), a long-term, actively managed, high-conviction portfolio designed to help investors look beyond short-term volatility and remain focused on long-term growth.Key Takeaways:
BCTK uses active management to focus on durable secular growth trends like AI, semiconductor hardware, and autonomous systems, helping to insulate investors from short-term earnings volatility
By investing in fundamentally strong businesses and visionary leaders, rather than focusing on quarterly earnings momentum, the strategy seeks to compound capital across full market cycles
The portfolio balances infrastructure leaders like Taiwan Semiconductor, Lam Research, and Broadcom with innovators like SpaceX and Alphabet to provide comprehensive, long-term tech exposure
See More: Tailormade Tech With Baron Capital’s BCTKCapitalizing on Secular DemandChasing quarterly earnings can prevent investors from investing in true leaders within the tech sector that are propelled by deep secular trends. Trends powering long-term earnings include the expansion of artificial intelligence (AI), advanced semiconductor hardware, and autonomous systems, which should remain sustainable despite a single quarter’s headlines.
BCTK is inherently built to withstand short-term noise and reap long-term benefits. Rather than trading based on momentum, the ETF invests in growth companies uniquely positioned to compound value across full market cycles. These long-term investments can include companies with scalable business models and relentless innovation. The result is a high-conviction portfolio built for the long term, rather than temporary hype.Built for the Innovation CurveBCTK’s top holdings highlight Baron Capital’s long-term investing philosophy. For example, the ETF has exposure to Taiwan Semiconductor, capitalizing on its monopoly-like foundry edge in next-gen AI chips. This allocation is balanced with a position in Lam Research, which provides critical wafer fabrication equipment to global chipmakers.
Further anchoring the portfolio is a stake in Broadcom, which provides exposure to essential infrastructure and networking technology. Additionally, BCTK has an allocation to SpaceX, capturing its dominance in the expanding space economy and global satellite internet growth. An allocation to Alphabet provides exposure to highly scalable cloud infrastructure and a comprehensive AI ecosystem.
By maintaining exposure to foundational tech giants alongside innovative companies with strong growth potential, BCTK provides comprehensive tech exposure that looks beyond fleeting trends. When earnings season inevitably triggers short-term market volatility, looking past the immediate horizon and trusting the scalable business models found in BCTK’s portfolio give investors a reliable path to capital appreciation in the tech sector.
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_On December 12, 2025, Baron Technology Fund® was converted from a mutual fund into an exchange-traded fund, Baron Technology ETF™. The ETF has an identical investment goal and substantially similar investment strategy as its predecessor mutual fund. For additional information please refer to the prospectus. _
Investors should consider the investment objectives, risks, and charges and expenses of the investment carefully before investing. The prospectus and summary prospectuses contain this and other information about the Fund. You may obtain them from the Funds’ distributor, Baron Capital, Inc., by calling 1-800-99-BARON or visiting BaronCapitalGroup.com. Please read them carefully before investing.
NAV and Market Price returns include returns of the Institutional Shares of the predecessor mutual fund prior to the ETF’s commencement of operations. Prior to the ETFs listing on 12/15/2025 the NAV returns of the Institutional Shares of the predecessor mutual fund are used as proxy market price returns. If the predecessor mutual fund had been structured as an ETF, its performance may have differed.
Risks: In addition to general market conditions, technology companies, including internet-related and information technology companies, as well as companies propelled by new technologies, may present the risk of rapid change and product obsolescence, and their successes may be difficult to predict for the long term. Technology companies may also be adversely affected by changes in governmental policies, competitive pressures and changing demand. Non-U.S. investments may involve additional risks to those inherent in U.S. investments, including exchange-rate fluctuations, political or economic instability, the imposition of exchange controls, expropriation, limited disclosure and illiquid markets. The Fund is non-diversified, which means it may have a greater percentage of its assets in a single issuer than a diversified fund. The Fund invests in companies of all sizes, including small and medium-sized companies whose securities may be thinly traded and more difficult to sell during market downturns.
_Investors generally incur the cost of the spread between the prices at which shares are bought and sold. Buying and selling shares may result in brokerage commissions which will reduce returns. _
_Prior to trading in the secondary market, shares of the fund are “created” at NAV by market makers, large investors and institutions only in block-size Creation Units. Each “creator” or “Authorized Participant” enters into an authorized participant agreement with Baron Capital, Inc. Only an Authorized Participant may create or redeem Creation Units directly with the fund. _
Investors buy and sell shares of ETFs at market price (not NAV) in the secondary market throughout the trading day. These shares are not individually available for purchase or redemption directly from the ETF. Baron Capital, Inc. serves as the distributor of the Creation Units for the ETFs on an agency basis. Baron Capital does not maintain a secondary market in Fund’s shares.
The discussion of market trends is not intended as advice to any person regarding the advisability of investing in any particular security. The views expressed in this document reflect those of the respective writer. Some of our comments are based on management expectations and are considered “forward-looking statements.” Actual future results, however, may prove to be different from our expectations. Our views reflect our best judgment at the time and are subject to change at any time based on market and other conditions and Baron Capital has no obligation to update them.
_Diversification does not guarantee a profit or protect against a loss. _
_The Top 10 Holdings for Baron Technology ETF: Taiwan Semiconductor Manufacturing Company Limited (8.9%), Lam Research Corporation (8.8%), Space Exploration Technologies Corp. (8.6%), Broadcom Inc. (6.4%), Alphabet Inc. (6.0%), NVIDIA Corporation (5.6%), Micron Technology, Inc. (4.8%), Spotify Technology S.A. (4.2%), Amazon.com, Inc. (4.0%), Coherent Corp. (3.6%). _
Portfolio holdings are subject to change. Current and future portfolio holdings are subject to risk.
Investment Products: NOT FDIC INSURED | MAY LOSE VALUE | NOT BANK GUARANTEED
BAMCO, Inc. is an investment adviser registered with the U.S. Securities and Exchange Commission (SEC). Baron Capital, Inc. is a broker-dealer registered with the SEC and member of the Financial Industry Regulatory Authority, Inc. (FINRA).
